DPL overseas buyers pull plug on orders
View(s):Dipped Products Ltd (DPL), whose factory at Weliweriya has been closed on a government ruling until cleared of tests that its industrial waste was not polluting ground water, was scrambling this week to convince overseas buyers to stay with the company until the issues are sorted out.
DPL officials, vehemently denying that their factory was responsible for contaminated water, said they were losing valuable orders and more importantly, the trust of buyers as a reliable supplier.
“Our whole process has got totally messed up,” said a worried DPL Managing Director Mahesha Ranasoma.
Protests outside the factory accusing the company of polluting the water led to clashes elsewhere in the area leaving three dead when army opened fire on protestors on August 1.
Dr. Ranasoma said that the company contributes foreign exchange worth nearly Rs 8.5 billion annually of which Rs 3.5 billion alone comes industrial and household gloves’ exports from the crisis-hit factory.
“We supply to more than 70 countries and have done a lot of marketing resulting in an order book that is filled with orders,” he said.
DPL Chairman Mohan Pandithage said with competition growing from China, Malaysia, Thailand and even emerging countries like Vietnam, India and Pakistan, a strategic marketing campaign was underway to increase orders when this calamity struck.
Just before the incident, DPL was able to convince a Russian buyer to shift his supply source for 3.5 million pairs of gloves to Sri Lanka from Malaysia.
The company also supplies to the 3M unit in China which is talks with DPL assessing the situation on delivery of orders.
A top official from global retailer Kimberly Clark flew into Colombo on Wednesday for urgent talks. “All these orders were based on good quality, good service, timely delivery and good product quality,” Dr. Ranasoma said.
He said the loss is not in the few containers that the company loses but the repeat orders that won’t come.
Meanwhile a government probe into the incidents is also focusing on the rivalry between two powerful businessmen (one with close links to the company and the other involved in an upcoming mixed development project and whether there had been some involvement by the (mixed development) businessmen. (Turn to Page 2 for related stories)
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